🏢 Airbnb's sublease play

…and Biden’s Build Back bump in the road (feat. EVs) [Disclosures](   Supply is key (Jens Kalaene/Getty Images)   Yesterday’s Market Moves   Dow Jones 34,590 (+2.18%) S&P 500 4,080 (+3.09%) Nasdaq 11,468 (+4.41%) Bitcoin $17,171 (+4.49%) Dow Jones 34,590 (+2.18%) S&P 500 4,080 (+3.09%) Nasdaq 11,468 (+4.41%) Bitcoin $17,171 (+4.49%) Hey Snackers, While your Insta Stories are filled with [Spotify]( Wrapped “music personalities,” here’s the global story: Bad Bunny was the platform’s [most-streamed]( artist for the third year in a row, and Joe Rogan defended his #1 podcast title. Stocks soared yesterday after Jerome Powell suggested that the Fed is on track to hike rates by half a percentage point in December — a cooldown from the last four “jumbo” hikes of 75 bps. 2BR Airbnb teams up with landlords and renters to juice the supply of Airbnb-able apartments Cleaning fee not included… [Airbnb]( has teamed up with building owners across the US to [boost]( the number of rentable rooms on its platform. Airbnb did the legwork in 25 markets and found property owners who’ll allow their tenants to list on Airbnb, sublease-style. - Less tiptoe, more dough… Renters afraid of getting caught violating lease agreements won't need to secretly Airbnb their places to make extra $$. No more need to tell your neighbors “those are just my French cousins” [laughs nervously]. - Testing, testing: To start, the program includes 175 buildings. Airbnb says participating renters have earned $100/night, on average, by hosting their apartments. But building owners can take up to 25% of the rental host's booking. There's no place like home… if you can afford one. Homeownership has become even more inaccessible, especially after mortgage rates soared. Last year, over a third of US households were renters. But renting is no bargain, either: while rent prices have been cooling this year, they’re still up 7.5% from last year. The prospect of earning extra income through Airbnb rentals could be welcomed by tenants — and help ease the financial anxiety of committing to one place for a year (especially when the economy’s so up in the air). THE TAKEAWAY Demand can follow supply… and Airbnb has an apartment-supply problem. As of October, apartments accounted for only 14% of Airbnb's listings — down 5% from 2019. According to Airbnb, that’s partly because of landlords' opposition to short-term rentals (think: anti-Airbnb rules). Now Airbnb’s looking to get landlords on board. The hope: more Airbnb-friendly apartments = more listings = more bookings. But there's a catch: research shows that the presence of short-term rentals in a neighborhood contributes to rising rents. Charged Hyundai and the EU are bashing Biden’s “Build Back” plans — and US EV-estments could be in jeopardy It’s the 11th hour for EV taxes… and everyone’s bickering about President Biden’s rules. In August, his Inflation Reduction Act introduced rules that require EVs to be mostly US-made to get $7.5K in green tax credits (all EVs were formerly eligible). But US trade partners like the EU, UK, South Korea, and Japan [say]( “Made in America” rules discriminate against foreign companies — and they’re urging Biden to ease or delay them. - Strict rules: Based on the current IRA rules, cars need to be built in North America and get 40% of key battery minerals from the US (or allies) to earn the credit starting next month. - Failing grades: As of now, not a single car model qualifies for the full credit — though [Ford]( and [GM]( say their cars will qualify for half. “Made in America” mayhem… is escalating. Initially, Biden’s EV enthusiasm boosted investment in electric manufacturing: Kia, Ford, [Honda]( [Tesla]( [Toyota]( and GM all announced additional US EV investments after the IRA’s passage. But now critics say strict rules could discourage future investment — or even start a trade war. - Cranky carmakers: South Korea-based [Hyundai]( the #2 US EV seller after Tesla, said the rules are an “astronomical” blow and demanded an exemption. - Peeved presidents: French President Macron is in the US this week to urge Biden to relax the rules to avoid an EU trade war. THE TAKEAWAY Biden faces a tough balancing act… The president wants to boost domestic EV manufacturing and reduce America’s reliance on China, which manufactures most of the world’s EVs (and EV batteries). But Biden also doesn’t want to alienate global carmakers, which recently announced plans to invest $82B in US EV manufacturing — and create 115K US jobs. What else we're Snackin' - [Play]( [Netflix]( hit "Glass Onion” might’ve earned $200M if the streamer had kept it in theaters for more than a week. But Flix execs say it’s more important to keep blockbusters on the platform as subs have slowed this year. - [Stale]( [DoorDash]( laid off 1.2K workers, joining a slew of tech companies that’ve cut jobs after they said they over-hired. DoorDash’s sales surged 33% last quarter, but losses nearly tripled as labor costs spiked. - [Brake]( [Volkswagen]( and [Honda]( halted production at some China plants as the country’s strict zero-Covid curbs continue. The policy has rattled global supply of everything from chips to plane materials. - [VIP]( [Delta’s]( hiking its Sky Club member fees by up to $600 next year, after fliers complained that some of its cushy airport lounges were too crowded. As air travel rebounds, some lounges have seen 130% more traffic. - [Stormy]( [Salesforce]( and [Snowflake]( shares sank after the cloud companies gave weak forecasts, despite beating earnings expectations. Also, Salesforce's co-CEO abruptly stepped down, and both anticipated lower Q4 sales. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. Snack Fact Of the Day “Long Covid,” a chronic illness resulting from Covid-19, could cost the US economy $3.7T [Read more]( Thursday - Jobless claims - Earnings expected from TD Bank, Dollar General, Kroger, Ulta Beauty, UiPath, ChargePoint, and Asana Authors of this Snacks own: shares of Netflix, Ford, GM, Tesla, Spotify, and Delta ID: 2617572 Robinhood Snacks newsletters reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC (Member [SIPC]( and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are for informational purposes only, and are not a recommendation of an investment strategy or to buy or sell any security, digital asset (cryptocurrency, etc) in any account. 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